>> coming up on "bloomberg best," the stories that shaped the week in business around the world. the fed meets, but doesn't move. brexit talks take a tougher tone and president trump tells bloomberg what is on his mind breaking up the big banks. >> he gave us a sense there is a decision or something eminent in terms of handling wall street. >> money managers talk exquisitely about their business. >> we're seeing money come out of active management heading towards passive structures. >> give me a sense of what you learned from valeant? >> it is very expensive.

>> the milken conference brings together a who's who of leaders in global finance. >> we are considering ultralow bonds. >> we did not meet expectations this quarter. >> former fed chief ben bernanke questions the timing of the tax cuts. >> plus, a big miss for apple. >> facebook has another great quarter. >> tesla missed by 50% in the stock went up >> it is all straight ahead on "bloomberg best." ♪ julie: hello and welcome. i'm julie hyman. this is "bloomberg best." on monday, president donald trump shared his thoughts on a number of political and economic

issues with bloomberg news. his comments made headlines and moved markets. >> in an interview with bloomberg news, president trump he is willing to meet with the president of north korea and he considering breaking up the big banks. pres. trump: we are looking at it right now, and dodd-frank is going to be very, very, seriously changed so the banks to go back to loaning money. erik: can you talk about the context in which he discussed that? >> i did bring it up that i did bring it up late in the interview because we spent so much time talking about taxes, health care, and north korea. but we thought it was important to get the question on the record. he gave us a sense that there is an announcement imminent on wall street in changes to dodd-frank. i wish i could tell you much

more, but he did not show as a whole lot more than that on that question. >> apple shares falling after hours after porting q2 earnings that beat expectations. the iphone has always been the moneymaker for the company, but sales were flat year-over-year. not surprising given the anticipation for the next iphone coming this fall. we're expecting a big design overhaul there. apple announcing that he generated -- on services. let's talk about the iphone. it is driving two thirds of revenues for the company. are you concerned that sales were flat? >> no. when you look at the quarter overall, it was fairly mixed. the one negative was those iphone numbers. but it is one of those quarters where you can only put so much emphasis on the iphone. the entire mishear can be attributed to the fact that consumers are holding off for

the next iphone generation device. you are seeing a little hit on the stock price, but that is something we would look past. >> it is a case that tim cook pointed out is that people have been making too much information about the iphone, and there is a lot of hope and expectation and they may be holding off on a purchase. if you look at shares -- both trading in taiwan, the two largest companies in taiwan, there is a lot of hope and believe that this is going to be something in the third quarter. unfortunately, it is hurting in the second quarter. when it comes down to is, will this hype be realized, or will they be a disappointment in the third and fourth quarter when the phone finally does come out? >> no surprise, no move today in

a unanimous vote, the fed kept its interest rate unchanged, but they did acknowledge that the economy has slowed in recent months. although, they go on to say and their statement, that will change. the committee views the slowing and growth during the first quarter as likely to be transitory. near-term risks to the economy, the statement says, remain roughly balance. >> the market was pricing in one additional hike this year as early as june. did you see anything in there that should change anybody's mind about what to expect from the fed? >> not much. talking about a reduction in normal, economic growth, which i assume is 2% to 3% this quarter. and talking about gradual rate hikes. when you speak to one in terms of what the market expects, then the fed with their doubts -- with their chart looking at 2% to perhaps you percent, i expect the market has it more right than the fed.

>> the house successfully voting for the repeal and replacement of obamacare. the bill now goes to the senate. pres. trump: as far as i am concerned, your premiums will start to come down and we will get this past through the senate. i feel so confident. >> the bill passed 217 to 213. speaker ryan had a margin of about 21 votes could spare and lost 20. mitch mcconnell has a margin up two vote he could lose. this will be an uphill slog to get anything through the senate because there are a handful of moderate republican senators who seem less likely to budge. it is something that republicans are promised consistently, constantly in every election for the last seven years. they won the house, the senate, the white house. there is a will to get to guess. -- to yes.

>> will end up happening to the senate --they will craft their own entirely new bill. they may take pieces of the house bill, but they do not want to own that house bill. that house bill holes terribly -- polls terribly. there is a lot of negotiating to go. it won't happen in an you weeks. -- the next few weeks. >> the payroll's report from d.c. now. >> 211,000 jobs in april, beating estimates of 190,000. unemployment down to 4.4%, that

the best since 2007, almost a decade. a solid rebound from the earlier reports. >> the job's number is a good number. and the underemployment number came down. it was a substantial change. there is something in there for everybody. it gently suggest that the fed continues on its course of gradual increases, and that of course, is the primary question -- what is gradual mean to the market? gradual means 40 basis points for the year. >> i think it is consistent with a hike in june and with three heights overall, because job creation remain solid and because the unemployment rate and u6 are down. in terms of the bigger issues, wage growth is to relatively sluggish and the participation rate ticked down. so, consistent with the fed hiking, but not consistent with economic takeoff. >> the president is pleased that we are growing jobs. he is very pleased. he is pleased that our unemployment levels are at 10 plus year lows. those are good numbers for him. he does not like where wages

are. he wants americans to have more disposable income. he wants to grow the economy. julie: still ahead as we review the week on bloomberg best, conversations from the milken institute global conference, including interviews with treasury secretary steven mnuchin. plus, bill at ken's exclusive interview at what went wrong with valiant. and most of the top business headlines. april was another month for u.s. auto sales. >> these of the three biggest players in the u.s. market and they are all down more than analysts participated. julie: this is bloomberg. ♪

♪ julie: this is "bloomberg best." i'm julie hyman. let's continue our global tour of the week's business stories on capitol hill in washington

where an agreement on a spending bill averted a u.s. government shutdown. >> let's find out if we have a government functioning in washington. looks like they will not shut down after all. congress has agreed to a plan to fund through september. what happened? >> they kicked the can down the road. i can tell you, they suggest they can really only get by doing these one week extension a for about two to three more weeks. at some point, they will have to pass a longer deal. what exactly is in this budget? there is a $15 billion down payment on the military, was which president trump has called for. there are $2 billion increases for health research, something that president trump had said he wanted to get rid of? there is also $1.5 billion for border security? that is not an increase along the u.s. mexican border, the

wall. this is a bipartisan deal that perhaps several folks had anticipated. >> democrats scored a very big victory here. there is no cuts to the sec or ftc funding. basically, it is a big win forecheck -- win for chuck schumer and nancy pelosi. this means this thing is all but done and a government shutdown is off the table. >> the democrats have been trying to claim victory on this, which is a strange way to look at a bipartisan discussion. it is very unusual for one group to walk out and start spiking the football saying we won and killed the other guys. >> a lot responding to two tweets the president sent out this morning. the reason is that we need 60 votes in the senate that were not there.

the headline -- our country needs a good shutdown in september to fix the mess. >> we have seen director mulvaney three times in the last few hours talking about the budget deal. he has used a different tone in each appearance, for saying this was a great deal, at sign a bipartisanship between the democrats and republicans, talking about the white house got a lot of its priorities into this bill. the most recent briefing was his most incendiary and most active in which he raised his voice and took on the democrats saying, the democrats are tried to take credit for a win that he would not stand for that. >> brexit talks get tougher as davis says he is willing to walk away if provoked. he made clear that the u.k. will not pay a bill from the european union.

the clock is ticking and time is short to reach that deal with britain. how do we get from 60 to 100? how is is playing a politically? >> that is the question people are asking, jonathan. they are scratching their heads over these numbers that are flying around. certainly, none of this has gone down very well. the mood was already pretty grumpy after that leak. the mood coming out of whitehall is one of not wanting to compromise. david davis coming out saying the u.k. will threaten to walk away from negotiations. the mood is london is pretty grumpy right now. >> sticking with the economic

impact of brexit, j.p. morgan chase is planning to move hundreds of london-based banks to luxenberg. the move would ease easy access to the market after j.p. morgan did warn us. jamie dimon warned us this would happen. this is possibly the beginning, isn't it, jonathan? jonathan: they are giving us more details. stratford, dublin, luxembourg. the chasm between europe and the u.k., it is very clear. they are trying to women in -- they are trying to win business. on top of that, we have a year denominated clearing debate. france is being very vocal. >> a slump in the u.s. auto industry shows no sign of letting up with sales at all six of the biggest carmakers falling

again in april could ford and honda posted the steepest year of declines. gm fell on the 6%. chrysler fell 6.6%. >> it is not looking good for the whole industry. these other three biggest players in the u.s. market. they are all down more than analysts anticipated. definitely some softness playing out. there were a few bright spots. gm's retail sales were up a little, but there's not a lot to hang your hat on. there is not enough growth in suvs to make up for the plunging auto sales. >> we have to see how may in june play out, but it looks like we are past the peak in an industry that is on the downside of a plateau, and maybe starting to contract. >> now it is fox that may be

trying to acquire tribune media. 21st century fox is teaming up with blackstone to outbid sinclair for tribune that had a market cap of $3.2 billion. >> this is all about getting scale and the television business and the real catalyst is now there is a republican-controlled fcc in washington, the expectations that all the shackles will be taken off in that this is an industry ripe for consolidation. everyone is talking to everybody and looking to get bigger. sinclair had been the most dominant player in the television business in terms of m&a, consolidation, and they were considered to be the top buyer for tribune. >> for tribune broadcasting so 20th century. why would someone to own more of a dying business? >> advertising growth is still growing, but the big change for the television industry has been retransmission revenue. those are revenues that flow to the tv station owners in the cable operators for the right to carry those deviations -- those tv stations.

that is revenue they have never had over the seven years of their existence and that is made a good business even better. >> metals extending their biggest daily plunge. the china data are softening. the china data are softening. what is behind this metals move? >> we are looking at iron and copper in the moving for good fundamental reasons. we had data out of australia showing fresh supplies coming into record stockpiles. on copper, stockpiles building in london. that is a bad sign. but let's not get carried away. iron ore is well over 100%. this is a very profitable

business. >> crude is coming off its worst day since opec announced cuts in november. wti slipped to $45 a barrel. this week alone, we are down 7%. >> this is all technical, nothing fundamental. nothing has changed in the market. all of a sudden, the market got bearish and we had a record amount of trading for a couple of minutes.

a record amount of open-ended and shorts coming into the market. >> how self fulfilling is this? >> it is never possible to call a bottom, but this is a good buying opportunity. the market is tightening up. we will see more robust inventory growth. there'll be a shift of financial sentiment boosting the price going forward. we are expecting a big jump in price by the end of the year. ♪

julie: welcome back to "bloomberg best." i'm julie hyman. this week, two of the world's most prominent fund managers spoke exclusively with bloomberg television. tim griffin and bill ackman. let's begin with tim griffin who sat down with erik schatzker who discussed recent entrenchment in the hedge fund industry. tim: i have been in the space for almost 30 years now, and over the 30 years, it has been an acute explosion in the size of the industry. the number of funds, $3 trillion of capital now deployed in hedge funds. it is been unbelievable growth story, and like many grow stories, we are going through a period of entrenchment as the

dynamics of the playing field are changing today. it is causing the second tier players to fall by the wayside. we saw this from the dot com bust. you see second tier firms and they have two call it a day and move on. erik: is your position, would you describe it as offense or defense of? tim: it is offense. erik: in what way? tim: in the quest for talent. there are a number of really talented individuals we can bring onto our team in this environment. with firms shutting down, there is a lot of good people are a lot of good people that we want to bring into the citadel. with firm struggling, there is a good chance to bring firms into the citadel. erik: how much longer do you think this shakeout in the hedge fund industry will be over? what will have happened? tim: it is not a shakeup for the hedge fund industry, but for

active management. right? we see the rise and etf and index products. we're seeing money come out of active management heading towards passive structures. as it happens, the money that passed the structures is not -- and that should make the markets a little less efficient at a larger profit pool them for those who remain. we will find a new nuclear realm over the years to come. the firms that are best able to assemble, analyze and incorporate information into their decision-making processes will continue to. >> we have a company that launched a most 14 years ago. for the first, we won't call it the first 12 years, generated 20% -- 21% on equity. he made a really bad acquisition -- then we made a really bad acquisition and brought that down to 13%.

this was a private into 20 -- entity. they traded fairly close. as a result of that bad acquisition, we dropped a significant discount. >> how much did it cost you? bill: about 30% or more. we were covered about 20% from the bottom. but the market is still not recognizing it. it is imperative with the discount, so you look at the ftse 250, the average equity is about 13% of a similar period. but the average ftse company trades at a multiple of that. we treat today at .58%. we are liquid. we operate like an investment holding company. we don't take corporate holding tax. >> this is clearly what you think is a great idea. give me a sense of what you learned from valeant.

>> what i learned is that they are very expensive. this is a strategy where historically, we bought a large stake in the company and on the board of directors. had yay or nay over decisions. in 2014, had a very successful transaction. we made a mistake with the path investment in the company. that was a big mistake in our history. francine: does it mean that you will stay away from pharmaceutical companies? ken: probably stay away from pharmaceutical companies. julie: coming up, more conversations from the milken institute conference. u.s. commerce secretary wilbur ross on nafta. when the fomc was front and center an interview with ben , bernanke put in a few good words for his successor, janet yellen.

>> she is highly competent has done a good job as a confidence of the markets. julie: this is bloomberg.

♪ >> you added 9 million users last quarter. did it come from donald trump? >> we can't say focus on politics, is really driving the growth. we don't have a way to measure that. twitter benefits when influential people use our platform to tell with happening. we encourage that, we love the discussion, with of the conversation that happening. the more it happens, the better we will be at showing you with happening in the world. we would love it every world leader would use it as a primary mechanism to talk to their constituencies. julie: that was twitter cfo anthony noto with emily chang.

many of the world's top investors, executives and financial policymakers spoke with bloomberg television at the milken institute to global conference in beverly hills this week, including leaders of the trump administration's economic team. let's begin with treasury secretary steve mnuchin. in an interview, he confirmed the u.s. is thinking about issuing ultra long-term bonds to fund infrastructure programs. steve mnuchin: we are studying ultralong bonds, yes. that is something we are considering at treasury. we have a working group looking at it. we think it is something that could absolutely make sense for us at treasury. on the infrastructure side, the president is determined that we do it major investment. -- that we make a major investment. they are a huge part of the

infrastructure that needs to be rebuilt, and we will do that are different ways. public private partnerships and financing so we don't believe in the budget by $1 trillion. >> do you think fundamentally governments look at infrastructure in the wrong way? every thing gets chucked and a intoed into -- chucked general accounts. if you are running a company, should it be counted differently to the short-term cash flow? is that one of the restrictions you face? steve mnuchin: absolutely. when you're running a business, you have an income statement and a balance sheet. if you're making an investment that has a 20 year or 30 year payback, don't expense it in day one or as a complete expense. government budget treats everything has cached so nice it -- cachedit makes it so it makes it more difficult. >> if he had to bring them into finance at infrastructure, what is the main ploy you would make? steve mnuchin: we've seen a lot of interest from our

counterparts in investing in the united states, whether it's an infrastructure or other opportunities. i think this is something we will be a will to get done. >> nafta is an old agreement. it does not reflect the current status of either the mexican economy or the american or the canadian. at a minimum, it needs updating. second, it has the problem with the rules of origin. mainly how much of raw material can be brought into from outside nafta and get the tariff benefits of nafta. in automotive for example, they did it part by part. some of those parts are not even used in cars anymore because technology has changed. there are a lot of changes like that that are needed. a lot of things that were not even thought about. digital economy not really dealt with. services economy not really

dealt with very much. some of the liberalization mexico is made to its natural resources, not dealt with at all. there was a lot of stuff to do. at the end of the day the objective will be twofold. increase total trade and reduce our trade deficit with both mexico and to a lesser degree canada. pulling out of nafta altogether. -- >> there was a lot of talk last week about pulling out of nafta altogether. ditching it versus renegotiating. what is your sense about the possibility of really just getting rid of the whole thing right now? wilbur ross: what's unfortunate is it blew it had begun as a sensible discussion of alternatives into something beyond what it really was. it's very bad, all the leaks that have been occurring. they seem to be a fact in washington. people told me there is no such thing as an off the record

conversation. but the fact remains the president has made the decision to try to negotiate nafta all over again. he's also make clear if we can't do that, his inclination will be to withdraw. julie: executives from some of the world's leading financial firms joined bloomberg for interviews at the milken conference. here are some of the highlights, starting with john micklethwait's conversation with pimco ceo manny roman. he explains why they retain an edge in the market. >> fixed income turns over 10 times more than the s&p 500 turns over. it's also the fact you have noneconomic agents. think of ecb and the fed is people who buy bonds for other reasons than active investment.

and you have the buyers who are accounting driven. think insurance companies or veterans funds. the opportunity for performance we think is much larger in fixed income. >> there was one possibility that someone could come in and cause problems. trying to push things towards passive because they think it's cheaper. >> of course there can be legislation that would push for the lowest possible price. we think over the business cycle we can add 1.25% to 1.5% alpha. when you compound this over the lifetime of the retirement account, the difference is quite significant. when you consider we are talking about 1.25% to 1.5%, to 2.3%, the amount is quite substantial. >> will pimco be as american as it is now or a much more global firm?

>> i think there is an urge for globalization across all businesses in america. the big unknown is how big it can be. it is a quite exciting but it's hard to size. >> it's very difficult for from lakers to get in at a moment. >> it's difficult for firms like us to get in at the moment but things may change. there is growth in emerging markets. we think latin america will be in exciting place to invest. we think we will have more resources going forward. ♪ >> we did not meet expectations this quarter. it is not the first quarter we did. >> it doesn't happen very often. >> but it happened this quarter. we have a terrific franchise into good about our franchise. there is no risk management issue. we feel good about the work we are doing for our clients. >> equities was that the star -- wasn't the star performer

either. five years ago, goldman's equities was five times bigger than morgan stanley. what happened? >> the businesses are weighted in different ways. we have an equity franchise, strong position across institutional work, and prime brokerage. one of the places we are not interested in working tammy is in quants. morgan stanley has a bigger position in the business. erik: what can you do about it? >> it is the business we are investing in and, candidly, it is not a straightforward business. while we are investing we want to be in the business. we have been a little bit more cautious but we are building capability. morgan stanley has a platform that's a little larger. if you look at the institutional business, we have a very significant institutional leading equity franchise. erik: can you take some of that away from morgan stanley? >> i think there was an

opportunity with a set of clients we don't do as much business with to increase market share. >> how? we are focused on that. by continuing to invest in technology and make sure it's developed meaningfully over the course of the last year to continue to develop and is competitive. we will start to grow our market share with those clients and it is something we will focus on. julie: in another exquisite interview, tom went one-on-one with former federal reserve chairman ben bernanke and washington, d.c. among the many topics was tax policy. tom: are we victims of our cultural economics? almost our cultural revision -- religion where we can't spend money when we need to? bernanke: it's ironic because now we are talking about big tax cuts. at least from the perspective of putting people back to work, it would make more sense to have more tax cuts and spending in 2013 or 2012 when i was asking for that.

from that perspective, with unemployment at 4.5%, the case today is a little weaker. there was always a case for improving the quality of the tax code, making it more efficient, fair, simple and so one. in terms of adding demand to economy, that would've been better a few years ago. tom: are these tax cuts tax cuts you can support, and are they something within the gilded age where all the benefits go too narrowly to the affluent? bernanke: if i talk about the proposal for personal income, i guess i have a couple of concerns. one is that it is more demand side oriented and supply-side. -- than supply-side. it will generate more consumer spending. it is not obvious it will increase the potential of the economy very much. four or five years ago we could've used more demand side stimulus. today is not as obvious we need that. the other aspect of it is that as written down -- we don't know

the details and it could create a much bigger deficit. i'm not opposed to increasing deficits under certain circumstances, but why not think about improving the efficiency of the corporate tax code or doing infrastructure? tom: do we have a risk of a leaderless fed with president trump? bernanke: i think that is presumptuous to us to say that presumptuous to say. he could reappoint janet yellen. it would certainly be from his perspective a reasonable, sensible thing to do. he is highly competent, she has done a good job, she has the confidence of the markets. but whoever is appointed, i'm sure, will certainly were carefully with the rest of the fomc. there is a reason why there are so many people on the federal market committee making those decisions, including seven members of the board. and high-quality staff that provides a lot of guidance and help. we are not quite in a 1928 situation. i'm very hopeful they will

appoint if not janet yellen somebody strong and confident. ♪

♪ julie: welcome back. i'm julie hyman. to spend a big week for corporate earnings reports around the world. we begin with silicon valley and results from facebook. >> facebook shares are down after reporting earnings that missed expectations that revenue -- but revenue that topped estimates. they have 1.94 billion monthly active users, up from 1.8 billion last quarter. another they contributed to overall revenue is mobile advertising. they accounted for 85% of ad revenue thanks to instagram's rapid growth.

>> we are seeing strong growth across those. we are seeing strong growth across those. >> those are incredible numbers. every quarter it seems like facebook has another "great quarter." it's hard to see whether my feet -- where there might be problems. revenue number looks great. the user number looks great. there is a lot of momentum at facebook. our forecast is instagram will have $4 billion in ad revenue. that will be over 1/10 of facebook's total revenue of the number comes true. i think that instagram is a really interesting platform for marketers. they are still really intrigued by it and how to reach the youth -- and want to figure out how to reach the youth audience prevalent in his to instagram. >> let's talk about the earnings. france's biggest bank recorded earnings that beat estimates.

>> it is solid results for the first quarter. is up 4.4%. it's even up 13%. this is a tribute to the business performance his revenues are up 7%. if you will get ratios, it continues to improve to 11.6%. basically that's good. to top it off, last but not least, we just decided the bank will be neutral by year-end. >> $5.94 billion, beating expectations. >> i have to say, not being facetious, i be happy met if i could close up 2017 right now. we guided at the end of the year to see if you get 4% revenue growth of the course of 2017. a very good start for the first order. that's the guidance we are holding for the market as we move into discussions over the next few days.

>> we know you have been watching the earnings, the first of the big banks reports this week. how does the numbers stack up? >> they stack up reasonably well. i will give he some numbers in australian dollars. net profit of 6%. that goes to $2.9 billion. cash profit is the one that's often watched with the banks. up $3.1 billion. 23% is still considered a slight mess. these numbers build on the success of anz domestic units, and over the past few months they have been gently letting go asian assets. some of the other numbers paint ixed picture. a m net interest margins falling from 2.07% to 2%. that debt charges also down to $720 million. >> we are watching the bank of singapore after southeast asia's biggest lender reported profits that the estimates.

you beat reports last week as well. we have seen some better-than-expected earnings fronts. are you seeing a common thread on the improvement? >> there was a turnaround for dbs. they had a weaker fourth-quarter. they came in at a 1% gain. dbs is seeing a bigger fiction wealth management. i think the common thread is that those oil and gas debt problems which the singapore banks have had, they seem to be under control. >> aberdeen asset management reported outflows in the most recent six-month period. assets under management plan to -- management climbed to about 5%, 108 billion pounds. >> the first quarter we've had for about four years we have seen really good positive flows and emerging-market and emerging-market debt. it's been a positive order for -- positive quarter for us,

probably the best for three or four years. francine: do you think the trend will continue? martin: i think so. people are beginning to see volume in emerging markets compared to the developed markets. people are looking into places like india with a growth rate. investing in equities and bonds and more generally in emerging markets globally, looking for volume. >> let's talk about bp. we just got the numbers. adjusted net income, $1.51 billion. it beat forecast by $2.7 billion. producing cash or not enough to cover through the issues. -- cover three big issues. those are cap x, dividends, and the gulf of mexico. >> if you look at bp or other big oil companies like chevron, the results would be very good. they have increased net income that beat wall street estimates. and the cash flow has gone up.

the main problem is bp cannot generate enough money to cover those three. cap x, dividend, and they are unique in that they need to continue paying the government -- the gulf of mexico for culpability. it's approaching the limit of bp is comfortable with. the ratio is between 20% on 30%. -- 20% and 30%. previous quarter, 28%. >> a five-month low for producers like shell. they are reporting first-quarter earnings today. let's start with shell. is it becoming a cash generating machine? >> more so than it was previously. i wouldn't say we are back to the boom times. they are doing the right things. investors like it, but we are now back to that. >> validating the chief executive decision in the massive acquisition of bg group? >> i think it does.

for now, obviously, because this is a long-term investments at we will have this conversation again in five years. things may be different. >> things are looking better for statoil, three consecutive sessions of adjusted losses before today. first quarter profit climbing. has it turned a corner? >> it's a long-term process. they are rationalizing the assets and looking at what will make the most money. that will not happen in two or three months. that will be over several years. >> tesla confirmed its highly anticipated model 3 remains on schedule for output to begin in july. this comes as company reported a first-quarter loss. due earnings actually matter or in this case losses matter when it comes to tesla? >> obviously not. a company like ford misses earnings by a penny or nickel and the stock gets clobbered. tesla missed by 50% and the stock went up. they do not run out of money and the model 3 is on track.

we have been saying it all week. this just really proves it, this stock is all about the that on the model 3, the bulls who believe this is the game changer. this is the mainstream major vehicle that will make tesla change the world. ♪

♪ >> you automakers talking about u.s. sales. they weren't that impressive. this is a chart going back to 2011 of u.s. auto sales. you can see it in writing, -- rising, rising, rising, in me get to this year and there has been a drop off coming in well short of expectations on the big names for gm, toyota, all a little behind estimates. >> there are about 30,000 functions on the bloomberg. we always enjoy showing you are -- our favorites on bloomberg

television. maybe they will become your favorites. here is another you will find useful. here's a quick take from this week. >> the palestinians must recognize the jewish state. >> the election of donald trump is embolden israeli prime minister benjamin netanyahu. just weeks after trump's inauguration, the israeli government announced it would build the first new settlements and a quarter century in the west bank. breaking the decades of u.s. policy, the trump administration says it does not view existing settlements as an obstacle to peace in the region. but responding to israel's announcement, u.s. officials said expanding settlements may not be helpful in achieving peace. >> i would like to see a pullback on settlements for a little bit. we will work selling out. -- we will work something out. >> here is the situation. the west bank is populated mostly by palestinians who hope to make it part of an independent state.

palestine. since israel comes with the territory half a century ago, israeli numbers have increased. since 1995, the population of settlers has grown four times faster than in israel itself. rather hawkish more dovish, the government's support the expansion of settlements. why do israelis choose the settle in the west bank? there are three main reasons. one is religion. many religious jews oinked to the bible which says the land was entitled to them by god. two, three, affordability. others like the relatively high standards of living made possible by government subsidies. according to the international court of justice, israeli settlements are in breach of international law. here is the argument. barriers, but present in the presence of israeli soldiers secure settlers make life

difficult for palestinians. both palestinians and some israelis argue settlement play into a bigger problem. they prevent piece by dividing and eating up the land left for the establishment of a libel palestinian state any peace -- palestinian state. any peace agreement will likely hinge in israel undertaking the tough task of removing tens of thousands of settlers in the west bank israel has removed settlers in the past but they were smaller numbers. >> even if every single settlement were to be dismantled tomorrow peace would not be obtainable without both sides technology uncomfortable truths and making difficult choices. >> choices as to where to draw borders, how to share jerusalem, and how to ensure security. ♪ julie: that was just one of many quick fix you can find of the bloomberg. you can find them at bloomberg.com along with all the latest business news and analysis 24 hours a day. that will be all for bloomberg best this week. thanks are watching. i'm julie hyman.

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